CASE STUDIES
We respect the privacy of all our clients. No one wants the world to know how close they might have been to bankruptcy. Therefore we provide the following as examples of recent projects to show you what can be accomplished with a good Turnaround
plan, hard work and a commitment of
the business owner to survive to fight another day.
*** While each Business is Unique, The Underlying Structures Are The Same . . .
CASH IS KING! ***
CASH IS KING! ***
Tool and Die Maker:
This company suffered in the recent recession with declining sales and 11 straight months of losses. Their bank called the loan, suppliers threatened lawsuits and declining health sapped the energy of the owner. The CFO painted a rosy and overly optimistic picture of the future. Employees who should have left, stayed while those who should have stayed, left.
Dorset Partners helped negotiate a restructured bank loan, matched employee skills with company needs, recast the financials into believable numbers, acted as an intermediary with vendors, established an achievable business plan, relieved the owner of much of his stress and within 30 days returned the business to profitability. The key to success was The Turnaround Plan followed closely by focused implementation.
Lumber Yard / Truss Facility:
Dorset Partners was called in by the bank to liquidate this 80 year old 3rd generation family business. The current generation had missed loan payments, lost sales with the downturn in the home building industry and had a negative cash balance. The company did however have a profitable division.
Unfortunately the lumberyard owners had waited to long to ask for help. Their primary business was sold at auction and the bank satisfied. Fortunately however, Dorset Partners was able to help the owner avoid personal bankruptcy while spinning off the profitable division and giving him a clean-shot at a new start with a profitable business. The husband and wife (both in thier 60's) now run a highly profitable $1million, debt free business.
Moving and Storage:
This multi-generation family owned business, like every other moving company, saw sales decline as corporate moves dried up and home sales declined. Management cut staff, reduced variable costs, missed loan payments, failed to pay vendors and entered into "the zone of insolvency".
Dorset Partners was called in before the bank took action to assess whether the company had a future. A cost accounting procedure was implemented which identified a profitable core business. With support of the owners, a new business plan was approved which purposely focused on the profitable core, reduced sales further and restructured the company. Non-performing assets were sold, bank loans were restructured, vendors were put on a delayed payment plan.
After 6 months of hard work, the business is now only selling to the profitable segment of their former business, have changed their terms from net 30 to CASH and is generating positive cash-flow. They returned to profitability, sold assets to reduce bank debt and survived.
After 6 months of hard work, the business is now only selling to the profitable segment of their former business, have changed their terms from net 30 to CASH and is generating positive cash-flow. They returned to profitability, sold assets to reduce bank debt and survived.
Fast-Growth Distributor:
This distributor was on an amazing growth trajectory in its third year in business. At the same time they were also burning cash and caught up in the excitement of where the company might be heading. Mid way through negotiating a venture capital round, sales fell flat and the secured lender stepped in, demanding an immediate liquidation.
Dorset Partners management was able to bring the business to immediate operating profits and cash sustainability. The company ran profitable and serviced debt for the next 3+ years.
Dorset Partners management was able to bring the business to immediate operating profits and cash sustainability. The company ran profitable and serviced debt for the next 3+ years.
Direct Marketer:
This privately owned company was bleeding cash while continuing to build overhead. Their CEO was dismissed and Dorset Partners was asked to assume an interim CEO role while the Board searched for a permanent replacement. Dorset Partners reduced overhead while at the same time creating a mind-set of growth and sustainable profitability.
